The Impact of the Ways of Agricultural Activity Reporting on Financial Statements under IFRS and Czech Accounting Legislation
The Impact of the Ways of Agricultural Activity Reporting on Financial Statements under IFRS and Czech Accounting Legislation

Author(s): Hana Bohušová, Patrik Svoboda
Subject(s): Business Economy / Management, Agriculture, Law on Economics, Accounting - Business Administration
Published by: Masarykova univerzita nakladatelství
Keywords: agricultural reporting; Fair value; cost measurement; Bearer plants; consumable assets;
Summary/Abstract: The specific nature of agricultural activity compared to other business activities undertaken for profit requires different methodological approaches for their recognition, measurement, recording and reporting. The contribution deals with the impact of International Financial Reporting Standards (IFRS) reporting in agricultural activities on financial analysis ratios. The aim of the research is the evaluation of the impact of the treatments for individual kinds of biological assets (such as consumable plants and bearer plants) and their changes in value during their life reporting. The comparison of traditional accounting approaches, cost models and fair value models is the starting point of evaluation. The data of the Institute of Agricultural Economics and Information are used as a source of the information on the market values of agricultural produce and cost of individual agricultural activities. According to the authors´ research the way of biological assets reporting could affect the financial position and performance of business entities involved agricultural sector significantly.

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